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Monday, July 2, 2012

CME: Natural Gas Prices Holding at Upper End of Trading Range

Natural Gas prices are continuing to trade around the upper end of the trading range on lighter than normal volume (likely related to the holiday this week in the US) as the very hot weather across major portions of the US results in a larger than normal call on Nat Gas for power related cooling demand versus the possible loss of Nat Gas demand as the economics of coal to gas switching continues to fade at current price levels. The economics of coal to gas switching are hovering around the unchanged level between coal and Nat Gas and at a level where utilities could begin to move back to coal in light of the overstocked coal inventory situation at many utility facilities.....Read the entire article.